Holiday Money Standoff For Thrifty Travellers

While most of us rely on credit cards on holiday some still place value in the traveller’s cheque. They are easy to buy and can be used in most places just like money. The big advantage is that if they are lost or stolen they are easily replaced as they have a unique serial number. Things may now be changing, however.

Traveller's cheques - for a long time the secure method of choice for taking money abroad - are getting a run for their money from new prepaid travel cards.

Prepaid travel cards allow holidaymakers to avoid carrying cash or dipping into their debit or credit card balances, much like cheques. However, instead of needing to carry around their passport, users can simply withdraw cash from an ATM.

In addition, the cards can be re-charged over the phone - although users are warned that such a facility can often take a day or two to clear. Consumer protection against theft is also offered.

A well know finance company has said that overseas charges also need to be considered: "Often there will be a combination of foreign exchange charges and commission, and unfortunately especially with traveller’s cheques, this is unknown cost until you are overseas and these can vary depending on the bureau used."

"Prepaid cards are a little simpler, with ATM fees listed and in some cases the FX charge; for example Western Union will charge four per cent. But there is still the unknown ATM operator fee and possible cross border charge."

However, prepaid travel cards offer a significant alternative to standard traveller’s cheques and in time competition will lower fees and increase pricing transparency. It is important to read the small print as there may be hidden charges ranging from forgotten pin fees and cancellation charges to emergency card replacement fees.

Don't forget to get a travel insurance policy before you go.

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